e n e r g y f o r paki st a - oracle power

A n n u a l R e v i e w 2 0 1 6

ENERGY FOR PAKISTAN

Welcome to Oracle Coalfields PLC

ORACLE Coalfields (“Oracle” or “the Company”) was founded in 2006 and is listed as an energy developer on the AIM Market of the London Stock Exchange since 2011. The Company’s primary interest is the Thar Coalfield Block VI area located in the Sindh Province of South East Pakistan, a 1.4bn tonnes resource with a 529Mt JORC mineral resource and 113Mt JORC proven reserves within Phase 1 of the mining area of its mining lease.

Oracle is establishing its role as a major solution provider for Pakistan’s critical shortage of electricity by bringing significant Chinese partners into the development of its mine and mine-mouth power plant.

CONTENTS

1 Key Milestones2 Our Year in Review4 Overview6 Our Project Development Process7 Operational Asset8 Our Business Model and Growth Plan10 Market Overview12 Chairman’s Statement14 Chief Executive’s Statement16 Managing our Risks 18 Our Responsible Engagement21 Introduction to Governance22 Our Experience Leadership24 Company Information

2016 ACHIEVEMENTS/PLANS FOR 2017

It has been a year of detailed work with potential Chinese partners, support from the goverments of China and Pakistan, manifested through our elevation from the “Active” list to the “Priority” list of the China-Pakistan Economic Corridor, has been affirmed. We are now in discussion with several Chinese groups and we can anticipate a firm direction shortly. Meanwhile we have made good progress in all the critical areas needed to bring the Thar Block VI project to financial close.

The work in 2017 will concentrate on formalising agreements and contracts to bring the project to full implementation along with securing the debt financing and the equity funding. This is also the appropriate time for the Company to look to diversify its portfolio of activity and we are actively seeking opportunities in Pakistan and internationally.

ORACLE COALFIELDS PLCANNUAL REVIEW 2016Strategic Report

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20 16

Admission to AIM

Implementation plan announced for Thar Coalfield including capex requirements and production costs

Technical Feasibility Study completed by SRK► JORC code compliant

resource► 529Mt in a 20km2 area

of the licence► 113Mt JORC proven

coal reserves in Phase 1

Environmental and Social Impact Assessment (ESIA) study for the mine completed and submitted to the Sindh Environmental Protection Agency (SEPA)

In November 2013, Memorandum of Understanding (MOU) with SEPCO for the development of a 600MW coal-fired power plant at Block VI, Thar Coalfield

A “No Objection Certificate” was issued by SEPA for the ESIA study for the mine on Block VI, Thar Coalfield

Oracle signed an Engineering Procurement and Construction (EPC) Framework Agreement in Beijing with SEPCO, one of China’s leading international power and construction groups

The project included in the China-Pakistan Economic Corridor (CPEC) which provides Oracle access to a US$46bn pool of funding

Coal price determined by the Thar Coal and Energy Board

ESIA for 660MW Power Plant undertaken by Mott MacDonald UK

The project status within the CPEC revised from “Active List” to “Priority Status”

Formal registration of power project; “No Objection Letter received” for power evacuation

Formation of Thar Electricity (Private) Limited (TEPL), to build, own, and operate the Block VI power plant

Coal Price Petition admitted

A Consortium Agreement entered with SEPCO for equity

Mining lease issued for Block VI, Thar Coalfield

Key Milestones

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20 13

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In June 2016, the Thar Coal and Energy Board issued their determination of a coal price for Sindh Carbon Energy Limited (SCEL), following SCEL’s price petition submitted in July 2015. This petition was based on SCEL’s Mine Feasibility Study.

Amongst the incentives to encourage the development of the major coal resource discovered in Sindh, the Government of Sindh has put in place a cost-plus arrangement, under which holders of mining leases in the Thar desert are allowed a coal price and electricity tariff that give an overall US Dollar based project internal rate of return of 20%.

On the basis of this determined coal price, the Company will proceed to apply to the National Electricity Price Regulation Authority for an initial electricity tariff for the power plant.

To ensure that the internal rate of return is sustained throughout the thirty year lifetime of the project, the Thar Coal Tariff Determination Rules 2014 (the “Rules”) allow for further coal price petitions as costs change.

The national grid in Pakistan is owned and operated by the National Transmission and Despatch Company (NTDC). In January 2017 they confirmed that power evacuation from the Block VI proposed power plant was to be provided in two phases with the first phase for the initial 660MW to be available in the last quarter of 2019 and the second phase by year ending 2021.

Power from the project would be purchased by the Central Power Purchasing Agency a division within NTDC under a Power Purchase Agreement (PPA) for a 30 year period. Payments due under the PPA would be guaranteed under an Implementation Agreement between TEPL and the Government of Pakistan for the duration of the PPA.

POWER PURCHASE AGREEMENT AND POWER EVACUATION

DETERMINATION OF COAL PRICE

Our Year in Review

ORACLE COALFIELDS PLCANNUAL REVIEW 20162 Strategic Report

The Company’s subsidiary TEPL has registered the 660MW mine mouth power plant with the Private Power Infrastructure Board (PPIB), a division of the Federal Ministry of Water and Power, which approves Independent Power Producers proposals to build, own and operate power plants in Pakistan. This registration proposes an overall project of 1,320MW to be constructed in two phases. In order to obtain the full approval for the project from PPIB a generation licence and electricity tariff also need to be agreed with the authorities along with an approved ESIA for the proposed power plant.

The Company’s standing in the China-Pakistan Economic Corridor (CPEC) has been elevated crom the “Active” List to the “Priority” List. This inclusion on the Priority List, given the project’s strategic and sizeable nature, should position the Company’s project on a fast-track for approval of debt funding by the Chinese Government Agencies. This was confirmed during the sixth meeting of the Joint Cooperation Committee of the CPEC, held in Beijing on 29 December 2016 between the Government of China led by the vice-chairman of the National Development and Reform Commission and the Pakistan Government led by Federal Minister of Planning & Development.

An Environmental and Social Impact Assessment for the 660MW power plant was carried out in 2016 and submitted to the Sindh Environmental Protection Agency for approval in March 2107. The ESIA was undertaken by Mott MacDonald UK Ltd for TEPL and confirmed that the proposed plant can meet the environmental standards required in Pakistan to operate along with proposed mitigation measures to minimise its impact on the environment and local affected people.

POWER PLANT

UPGRADE IN CPECCOMPLETION OF ESIA FOR 660MW POWER PLANT

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The Company was founded in 2006 and was listed on the AIM Market of the London Stock Exchange in 2011 (AIM:ORCP) and is actively developing a major integrated coal resource and power generation project in the Thar region of the Sindh Province in South East Pakistan.

Overview

The Company has registered the initial 600MW Power Plant with the Private Power Infrastructure Board (PPIB) and in November 2015 a ‘‘No Objection’’ letter was issued for the Power Plant along with confirmation that the power generated can be evacuated by the National Transmission and Despatch Company (NTDC) high voltage transmission line to the national grid. The Company revised the registration to 660 MW in phase 1 and 1,320MW in phase 2 with PPIB in January 2017.

The coal price for the mine will be regulated and incorporate the announced fiscal incentives under the Thar Coal Price Rules be administered by the Thar Coal and Energy Board (TCEB). The Company`s subsidiary Sindh Carbon Energy Ltd submitted a Coal Price Petition in 2015 to TCEB for a Feasibility Stage Tariff which was determined by TCEB in June 2016 at US$60.23 per tonne. Further petitions will be submitted at the Financial Close Stage once EPC prices have been finalised.

Also in January 2017 the Thar Block VI Mine and Power integrated project was elevated to the Priority List of projects to be sponsored under the China Pakistan Economic Corridor bilateral agreement between the Pakistan and Chinese governments which will assist in securing the finance for the project.

The Thar Coalfield provides Pakistan with the opportunity to develop a major indigenous energy resource which could make a significant contribution to the country’s energy needs for years to come. This would have the additional benefit of reducing the country’s reliance onimported oil and gas. Pakistan suffers from a critical shortage of electricity and Thar coal can provide the country with competitively priced power in the country's energy mine.

A major drilling programme was carried out as part of the Technical Feasibility Study which confirmed the in-situ coal deposit of 1.4bn tonnes within the Block VI area of 66.1km² and a JORC compliant resource of 529Mt with a proven reserve of 113Mt in the Phase 1 mining area of lignite coal suitable for use in a conventional thermal power plant.

The Technical Feasibility Study confirmed that an open-pit mine could be developed with a capacity of 5Mtpa to support a 600MW mine-mouth power plant.

A Mining Lease was granted by the Directorate of Coal Mines Development, Government of Sindh (formerly Coal Mines Development) in April 2012 for the Block VI area for a 30 year period, extendable for a further 30 years.

An Environmental and Social Impact Assessment for the coal mine has been completed by International Consultants and was approved by the Sindh Environmental Protection Agency (SEPA) in January 2014.

A Resettlement Action Plan was produced in 2014 and was submitted to SEPA in April 2014 as required and accords with the Sindh Government's Resettlement Policy Framework drawn up for the Thar Coalfield.

In September 2014 the Company signed an EPC Framework Agreement with SEPCO for the initial construction of a 600MW mine-mouth power plant and for the development of a 4.0Mtpa open-pit mine to supply the power plant. Work is ongoing to develop this agreement into EPC term sheets for both the mine and the power plant. In 2016 the proposed power plant capacity was increased to 660MW with a planned expansion to 1,320MW in a second phase development.

The Sindh Government is actively promoting the development of the Thar coalfield. This includes a series of fiscal incentives and tax concessions for developers of coal mines and power plants in Thar including an allowed project internal rate of return (IRR) of 20% (in US$). A coal sales price is being determined under the Coal Price Mechanism incorporating the fiscal incentives and these are currently being negotiated with the regulatory authorities.

The Government is constructing major infrastructure improvements in Thar to facilitate mine and power development including upgrading and constructing new roads from Karachi to Thar, constructing a new airport to serve the coalfield, as well as constructing and upgrading new high voltage transmission lines for power evacuation.


THE THAR COALFIELD

Located in Sindh Province 380km east of Karachi A world class deposit, 175bn tonnes of organic lignite Supported by the Sindh Government’s Energy Department and the Thar Coal and Energy Board created to fast track Thar coal and energy projects Fiscal incentives for developers Block VI project in the Thar Coalfield is included in the China Pakistan Economic Corridor for prioritised investment The Governments, both Federal and Provincial, are promoting the use of indigenous coal as an alternative to imported oil and gas Sindh Government is undertaking a series of infrastructure development initiatives including building new roads to the coalfield, and new high voltage transmission lines along with an airport to service the coalfield

25%Coal accounts for less than 1% of Pakistan’s

power consumption. The government projects this to rise to 25% by 2025 as part

of its energy plan

Read more on our Market Overview on page10

CORRIDOR OF OPPORTUNITY

The China-Pakistan Economic Corridor runs from the Chinese border to the port of Gwadar. Proposed road routes are being finalised.

KASHGAR

SINDH PROVINCE

LAHORE

GWADARKARACHI

PESHAWAR

FAISALABAD

ISLAMABAD

QUETTA

HYDERABAD

ORACLEPROJECT AREA

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EPC CONTRACTORS

Chinese state-owned enterprises, selected to carry out the Engineering,

Procurements and Construction Contracts for the open-pit mine

and 660MW Power Plant.

PROJECT MANAGEMENT

To be provided by Oracle and its Technical Advisors for the mine

and power development.

THAR COAL AND ENERGY BOARD

A part of the Energy Department of the

Government of Sindh set up to facilitate development of the Thar Coalfield. The body that determines the

regulated Coal Tariff.

MINING LEASE

A Lease for the Block VI 66.1km2 area in Thar granted

by the Directorate of Coal Mines Development,

Government of Sindh for a 30 year period extendable for

a further 30 years.

ESIA AND RESETTLEMENT

The Environmental and Social Impact Assessment

including Resettlement for Block VI carried out by

Hagler Bailly of Pakistan and Wardell Armstrong from the

UK and approved by the Environmental Protection

Agency, Government of Sindh.

O&M CONTRACT – MINING

A contract for the operation and maintenance of the

open-pit mine on a term basis once the EPC

Contract is completed.

GOVERNMENT OF SINDH

GOVERNMENT OF PAKISTAN

Our Project Development Process

ORACLE COALFIELDS PLC

COAL PROJECT POWER PROJECT

TEPLThar Electricity (Private) Ltd., a

subsidiary company incorporated in Pakistan developing the mine-

mouth 660MW power plant in Block VI.

SCELSindh Carbon Energy Ltd.,

a subsidiary company incorporated in Pakistan,

holder of the Mining Lease for Block VI open-pit mine.

Coal Supply Agreement

The Contract between SCEL and TEPL for the supply of coal from

the mine to the power plant.

Parent Company listed on the AIM market of the London Stock Exchange.

PPIB

The Private Power and Infrastructure Board, a

Federal Government entity which permits Independent Private Power developments

in Pakistan.

NTDC & CPPA

National Transmission and Despatch Company (NTDC),

a Federal Government entity which owns and

operates the high voltage national transmission grid

in Pakistan. The Central Power Purchasing Authority is a division of NTDC which purchases power generated

by Independent Power Producers.

NEPRA

The National Electric Power Regulatory Authority, a

Federal Government entity which determines the

regulated electricity tariffs in Pakistan.

O&M CONTRACT – POWER PLANT

A contract for the operation and maintenance of the

660MW power plant on a term basis once the EPC Contract is completed.

GOVERNMENT OF SINDH

Coal Tariff Regulator

PPA

The Power Purchase Agreement for the sale of

electricity from Independent Power Producers to NTDC.

IA

The Implementation Agreement signed with the

Government of Pakistan, inter alia, providing a Government

Guarantee for payment against electricity delivered.

PPA/IA

Tariff Regulator

Water supply contract

Government Guarantee –

Implementation Agreement

Generation licence


Operational Asset

POWER PLANT APPROVED PROCESS

Oracle and SEPCO (the Parties) will be sponsors of a 660MW indigenous coal-fired power plant (the Power Project), which will be built, owned and operated by Thar Electricity (Private) Limited (TEPL), a private limited company incorporated in Pakistan, a subsidiary of Oracle Coalfields PLC. The Power Project has already been registered with the Private Power and Infrastructure Board (PPIB), part of the Ministry of Water & Power, Government of Pakistan. The Parties have now made a detailed submission to PPIB, of which the Consortium Agreement forms part. It is expected that this will lead to TEPL entering into a Power Purchase Agreement (PPA) with the Central Power Purchasing Authority (CPPA) a division of the National Transmission and Despatch Company (NTDC), the state utility, and an Implementation Agreement with the Government of Pakistan providing, inter alia, a Government guarantee for the payment by CPPA for electricity supplied to it by TEPL.

The Thar Coalfield is located 380km east of Karachi, and covers a total area of 9,100km2, with a total lignite coal resource in excess of 175bn tonnes. ► Extensive work has been undertaken

on the assessment of the commercial viability of the resource by Government and independent international consultants

► The coal is lignite and commercially viable, with low ash and sulphur content

► Lignite coal is suitable for power generation and for industry use, in particular, the cement industry. These sectors are anticipated to be the main off-takers

► In Block VI, following a drilling programme, SRK Consultants assessed a JORC mineral resource of 529Mt over an area of 20km² with proven reserves of 113Mt in Phase 1. Oracle’s total resource amounts to 1.4bn tonnes

BLOCK VI THAR COALFIELD The Thar Coalfield is located 380km east of Karachi. It covers an area of 9,100km2, with a total lignite resource in excess of 175bn tonnes, the sixth largest in the world.

Block VI is located in the centre of the coalfield and covers an area of 66.1km2. The site has been extensively drilled and coal samples recovered and tested to international standards and a JORC compliant resource of 529Mt has been confirmed over a 20km2 area.

The Technical Feasibility Study carried out by SRK Consulting confirmed the JORC resource and the results of the geotechnical and hydrological investigations set out the design parameters for the mine and confirmed the viability of constructing and operating a large open-pit mine capable of producing 5Mtpa of coal. The lignite coal in Block VI is relatively low in sulphur content when compared with lignite in Germany and Poland. Although the moisture content is relatively high, it is suitable for a coal-fired electrical power plant. The coal itself lies at 150 metres depth below the surface.

Following the completion of the Technical Feasibility Study the Company's Pakistan subsidiary Sindh Carbon Energy Ltd (SCEL) was granted a Mining Lease for

Block VI by the Coal Mines Development, Government of Sindh (formerly Coal Mines Development) for a 30 year period extendable for a further 30 years.

A pre-feasibility study by Mott MacDonald UK confirmed the suitability of the coal for thermal power generation and concluded the coal was suitable for either conventional pulverised coal or circulating fluidised bed plants.

The Company engaged Wardell Armstrong International (WAI) and Hagler Bailly of Pakistan to carry out the Environmental and Social Impact Assessment for the project and this was completed in May 2013 and approved by the Sindh Environmental Protection Agency (SEPA) in January 2014. The Company submitted its Resettlement Action Plan (RAP) to SEPA in April 2014 as required in the ESIA approval process. The RAP has been drawn up in line with the Resettlement Policy Framework by the Government of Sindh.

The RAP sets out the policy and procedures that will be employed to facilitate the eventual resettlement of local communities who will be affected by the mine and power plant development. This is being done in consultation with the local communities with the support of the Thar Coal and Energy Board and local government agencies.

Work is continuing in 2016 to establish current land ownership within the block and to identify areas suitable for resettlement. A comprehensive census of all the affected villages and affected persons is underway and will be completed in early 2017 as the first step in the land acquisition process.

The Company engaged Mott MacDonald in 2016 to carry out the ESIA for the 660W Power Plant to be constructed adjacent to the mine. This was completed in early 2017 and submitted to SEPA for formal approval.

Also in 2016 the Company engaged WAI to review and update the Mine ESIA and bring it up to international standards prior to project implementation.

In June 2015 the Company’s subsidiary Sindh Carbon Energy Ltd (SCEL) which holds the Mining Lease for Thar Block VI submitted a Coal Price Petition based on the Feasibility Study to the Thar Coal and Energy Board (TCEB) who are responsible for regulating the coal price for projects in Thar. In June 2016 the TCEB determined

the coal price at US$60.23 per tonne at Feasibility Stage. Further tariff petitions will be submitted at the EPC and financial Close stage prior to project implementation.

In 2015 Oracle set up a subsidiary Thar Electricity (Private) Ltd (TEPL), a company registered in Pakistan, to promote the development of the Block VI mine-mouth power plant. TEPL has registered the TharBlock VI Power Plant with the Private Power Investment Board (PPIB) for a plant up to 1,320MW capacity and has made an application to construct initially a 600MW plant at the site. The Central Power Purchasing Agency issued a "Letter of No Objection" for the 660MW power plant in January 2017 and NTDC also confirmed that power from the project will be accommodated within the planned high voltage transmission line.

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Our Business Model and Growth Plan

BUSINESS MODEL

► Power Plant EPC finalised

► Mine contractor agreed

► Mine EPC finalised

► Resettlement Plan

► Coal Price Petition approved with TCEB

► Electricity tariff submitted with NEPRA

► Transmission line planning

► Financial close

► Access road construction begins

► Office and accommodation construction begins

► Power plant construction begins

► Dewatering begins

► Mine construction begins

STRATEGIC PRIORITIES 2017

Scout for energy assets at different stages of the cycle; screen opportunities and focus on those that meet criteria.

Deliver energy resource and route to market; implement environment and all other corporate social responsibility plans.

Work energy resource and deliver to market; continue implementation of corporate social responsibility plans; repay lenders and pay dividends.

The longer term aim is to build up a portfolio of energy/power assets at different stages of the cycle, with continuous review of existing portfolio and readiness to trade existing interests with other interests that improve the risk/reward balance of the overall portfolio.

Evaluate the energy opportunity and secure the rights; agree technical approach; determine route to market; consider regulatory and fiscal framework; consider and develop plans for the environment and all other corporate social responsibility issues; assess economic viability; engage working contractors; source finance; financial close.

SCOUTING

EXPLORE AND DEVELOP

DELIVER ENERGY

RESOURCE AND ROUTE TO MARKET

GENERATE CASH

PORTFOLIO MANAGEMENT


Oracle’s growth strategy for 2017 will be to complete the EPC negotiations for both the mine and the power plant and with Sinosure for the export credit financing so that the project can reach financial close in 2017.

Work is continuing on site in the pre-development stage to implement a Corporate Social Responsibility Programme to provide early benefits to the local community in terms of water, basic healthcare and veterinary support. Land survey work is being undertaken in accordance with the Resettlement Action Plan prepared in 2014 which will also align with the Resettlement Policy Framework published by the Sindh Government which conforms to international best practice.

The coal price for supply to the power plant is being finalised with the Thar Coal and Energy Board (TCEB) under the Coal Pricing Mechanism which will incorporate the fiscal incentives and the allowable Internal Rate of Return for the project. This price will then be a pass through price into the Power Purchase Agreement to be negotiated with the National Transmission and Despatch Company (NTDC) and for tariff approval by the National Electricity Pricing Regulatory Authority (NEPRA) in Pakistan. The Company will also sign an Implementation Agreement with the Government of Pakistan which, inter alia, will guarantee payment of electricity offtake.

Oracle will also be working with TCEB and NTDC regarding the provision and construction of high voltage transmission lines to evacuate power from integrated mine and power projects in Thar.

All the above will need to be in place to achieve financial close in 2017. Once financial close has been achieved, project implementation can proceed on site.

Initially an access road from the existing public road will be constructed to mobilise equipment and begin the construction of the mine offices and workshops along with the camp for construction workers for the mine and power plant. Initial dewatering of the mine and overburden removal will begin in late 2017 along with the commencement of the power plant construction.

For the period 2017-2020, the plan is to proceed to open up the mine, in parallel with the construction of the power plant. Coal production and delivery of electricity should commence in 2020.

The longer term growth aim is to build up a portfolio of energy/power assets at different stages of the cycle, with continuous review of existing portfolio and readiness to trade existing interests with other interests that improve the risk/reward balance of the overall portfolio.

WHY INVEST

175bnThar‘s total lignite coal resource

in excess of 175bn tonnes

4MtpaOracle’s 4Mtpa of coal will feed

a 660MW power station

660MWThe power plant will have a

production capacity of 660MW

► Oracle’s risk profile has reduced considerably

► Continued emphasis on the development of domestic energy resources

► Power from Oracle’s Thar coal to be competitive

► Attractive development opportunity offering high returns

► Strong partners for mine and power plant development and financing

1.4bnOracle’s total JORC resource

amounts to 1.4bn tonnes

OUR INVESTMENT PROPOSITION

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Market Overview

ENERGY CRISIS

The country continues to struggle with scheduled and unscheduled power cuts. The problems have been particularly acute since 2008, with outages of between 12 and 16 hours a day.

The Government of Pakistan is committed to increasing energy supply to foster sustainable economic and social development. There is a significant shortfall of cost-effective electrical power capacity.

In its State of Industry Report 2015 NEPRA (The National Electricity Pricing and Regulatory Authority) projects that in order to meet peak demand that some 8,000MW needs to be added today to the existing system and that there is 17,200MW of new capacity planned in the coming years. To accommodate this increase a significant improvement in the grid distribution network will also have to be constructed. The Government is committed to eradicating the shortfall and to supporting the development of indigenous fuel supplies for electricity generation.

The country relies heavily on imported energy; imports account for more than 20% of its energy needs and more than 50% of its feedstock needs for thermally generated electrical power, a significant drain on the country's foreign exchange resources.

This energy shortfall currently leads to frequent power outages and, coupled with the high cost of energy, has hindered the country’s GDP growth and export capacity.

CHALLENGES AND OPPORTUNITIES

The Government of Pakistan‘s National Power Policy 2013 is to encourage the development of the country‘s indigenous energy resources, in particular the development of the Thar coalfield where, with a resource of some 175bn tonnes, the country can develop low-cost domestic generation capacity at half the cost of imported furnace oil.

Furthermore, it would reduce the current deficit in generating capacity, release government expenditure and reduce pressure on the country’s balance of payments. Developing a competitive indigenous supplied power sector will boost economic growth.

Demand for electricity in Pakistan is expected to rise by 5-6% pa over the next several years. The growth in electricity demand could well accelerate above this level if the cost of energy in Pakistan was reduced and if, as we expect, the level of GDP growth surges as a consequence.

RISING COAL AND ENERGY DEMAND

Pakistan suffers from a critical shortage of energy, due to an increase in demand and a historic lack of investment

KEY POINTS

189m people Pakistan has a population of approximately 189m people, the sixth largest in the world

12-16 hours The problems have been particularly acute since 2008 with outages of 12-16 hours a day across the country

20% Pakistan relies on imports for more than 20% of its energy needs


ENERGY RESOURCE

Electrical power generation from coal is projected to increase from its current 1% figure to 25% by 2025 according to the Government of Pakistan‘s National Power Policy 2013. This will significantly increase the share of electricity from indigenous sources and improve the security of energy supply as well as improving diversity in the power generation portfolio of the country.

Pakistan recognises that its current energy mix is overly dependent on imported oil and gas and the benefits to the economy, particularly in the balance of payments and foreign exchange, in expanding domestic coal fired electricity generation are self-evident.

The Government has also recognised that the electricity distribution system requires considerable upgrading. The National Power Policy 2013 is committed to improving the efficiency of the current system and encouraging future generation projects throughout the country.

GOVERNMENT SUPPORT

The project has strong support from both the Federal and Sindh Governments. Numerous fiscal and financial incentives are in place.

► The Thar Coalfield provides fiscal incentives and tax breaks for the life of the projects.

►The China-Pakistan Economic Corridor has included coal and power projects being developed in Thar as priority projects.

► The Government is promoting the use of Thar coal as an alternative to imported oil and gas.

► The Government of Sindh has committed strong support for Thar coal through:

Energy Department

Sindh Coal Authority

Coal Mines Development Department

Thar Coal and Energy Board

POWER SECTOR OF PAKISTAN BY RESOURCE 2014-15

Source: Pakistan Energy Yearbook 2015

Source: BP Statistical Review 2014

Nuclear 5.4%

WORLD ENERGY USE BY RESOURCE (%)

Gas 26.5%

Hydro 30.4%

Oil 36.8%

Nuclear 5.5%

Gas 24%Oil 32%

Coal 29%

Renewables 1.5%

Hydro 8%

Coal 0.1%

11

GOOD PROGRESS IN ALL CRITICAL AREAS TO REACH FINANCIAL CLOSE

Anthony Scutt, Chairman

It has been a year of detailed work with potential Chinese partners, support from the governments of China and Pakistan, manifested through our elevation from the “Active” list to the “Priority” list of the China-Pakistan Economic Corridor, has been affirmed. We have been in discussions with several Chinese groups and shareholders will be kept informed with progress in this respect.”

I am pleased to present the results for Oracle Coalfields PLC (the ‘‘Company’’ or “Oracle’’) for the year ended 31 December 2016.

It has been a year of detailed work with potential Chinese partners, support from the governments of China and Pakistan, manifested through our elevation from the “Active” list to the “Priority” list of the China-Pakistan Economic Corridor, has been affirmed. We have been in discussions with several Chinese groups and shareholders will be kept informed with progress in this respect.

Chairman’s Statement


Meanwhile, we have made good progress in all the critical areas needed to bring the Thar Block VI project to financial close. We have updated our registration to the Private Power Investment Board to reflect the full size of our eventual power plant, 1,320MW. Water supply has been confirmed by the Energy Department of the Government of Sindh, at 38 cusecs; a detailed water agreement should follow. The National Grid (the National Transmission and Despatch Company) who are constructing power evacuation lines to link Thar electricity output to the national grid has confirmed that our power generated will be evacuated. As the first step in the resettlement of people who will be displaced by the project, we have carried out a detailed census of the affected population as part of the resettlement process The power plant Environmental and Social Impact Assessment (ESIA) has been submitted to the Sindh Environmental Protection Agency; the mine ESIA, originally completed in 2013, has also been updated. The coal price regulator, (the Thar Coal and Energy Board) has made an initial price determination, at US$60.23Mt. Also, it has been encouraging that the part Government owned neighbouring Block II have reached financial close during 2016 and are making good progress in opening up their mine and in the construction of a 660MW power plant; their work to date demonstrates the validity of the Thar feasibility studies.

The world environment for mining and for coal has improved, with increases now in internationally traded metallurgical and thermal coal prices. Our project remains a purely Pakistan play, the only integrated mine and power project in Pakistan on the London Stock Exchange. Whilst Pakistan still presents investors with challenges, there is a growing atmosphere of stability in the country. Its economic growth is drawing widespread plaudits, notably from the IMF and the World Bank. There has been an improving degree of political stability. There are still security incidents, but a greater sense of unity is now apparent between the people, army and politicians in addressing security matters. Oracle's team regularly visits Pakistan, and we feel the commentary of Christine Lagarde, Managing Director of the IMF, hits the mark: “I congratulate Pakistan on having successfully completed its IMF-supported economic reform program. Improved macroeconomic stability as well as strengthened external buffers and public finances will provide a solid foundation for the economy”.

Our project plays a vital role in contributing to Pakistan‘s economic improvement. The acute shortage of electricity in Pakistan continues, and, in our view, the development of Thar will go a substantial way to address this shortage. At present 40% of Pakistan‘s electricity is generated from imported fuel and the use of indigenous fuel will substantially reduce this onerous call on foreign exchange. More than this, economic growth has been stifled by the lack of power in recent years; removing this constraint should lead to growth rates of 6% or more in the near term, as forecast by the World Bank.

Oracle is looking into diversifying its portfolio of activity and we are seeking wider opportunities in Pakistan and internationally.

We are most grateful to the Pakistani Authorities at both Federal and Provincial levels for the constructive way in which they have supported and continue to support our project.

I would like to thank my Board and management colleagues for their hard work in 2016, which resulted in the considerable progress described above. There have been some changes to the Board during 2016. May I first pay tribute to the two members of the Board who have left during the year, Adrian Loader and Roderick Stead. Both have contributed highly valued expertise to the Company. I thank them and wish them both well for the future. I welcome Yves Mordacq to our Board. He brings extensive experience in international capital markets and asset management, with particular emphasis in the natural resources sector.

Above all I wish to thank our shareholders for their continued confidence, patience and support, enabling us to bring the project forward.

Anthony ScuttChairman

09 May2017

13

The economic growth and overall development of Pakistan continues to be restricted because of electricity supply shortfalls throughout the country. In its State of Industry Report 2015 The National Electricity Pricing and Regulatory Authority (NEPRA) projects that in order to meet peak demand that some 8,000MW needs to be added today to the existing system and that there is 17,200MW of new capacity anticipated in the coming years. To accommodate this increase a significant improvement in the grid distribution network will also have to be constructed. The Government is committed to eradicating the shortfall and to supporting the development of indigenous fuel supplies for electricity generation.

In December 2014, the Government of Sindh enacted the Thar Coal Tariff Determination Rules which set out how the Thar Coal and Energy Board (TCEB) will review and agree a coal tariff for developers in Thar incorporating the fiscal incentives for project developments. The Company submitted its Tariff application in July 2015 and the Tariff was determined by TCEB in June 2016 at US$60.23 per tonne. Further Tariff Petitions are expected to be submitted prior to financial close and the Government has adopted a cost plus mechanism for tariff determination with a review process over time as the projects proceed.

Our work in 2017 will concentrate on formalising agreements and contracts to bring the project to full implementation, in line with the fiscal incentives, along with securing all the financing arrangements.”

Chief Executive’s Statement

FORMALISING AGREEMENTS TO BRING THE PROJECT INTO FULL IMPLEMENTATION

Shahrukh Khan, Chief Executive Officer


The Block VI integrated project has been elevated to the list of Priority Projects of the China Pakistan Economic Corridor (CPEC). CPEC is a bilateral arrangement between China and Pakistan which has been set up to fast track Chinese financing of energy and infrastructure projects across Pakistan. The inclusion of our project in the CPEC should assist in progressing the various approvals required both at Federal and Provincial level in Pakistan and also with the Chinese financial institutions. Progress with potential Chinese partners is taking longer than we might have hoped, but detailed discussions are at present underway with several State-owned Enterprises, as financing partners and as EPC contractors.

Thar Electricity (Private) Limited (TEPL) has registered the Thar Block VI Power Plant with the Private Power and Infrastructure Board (PPIB) for a plant up to 1,320MW capacity and has made the application to construct initially a 660MW plant at the site.

The PPIB is the division of the Ministry of Water and Power, Government of Pakistan which regulates Independent Power Producers (IPP) and approves applications to build, own and operate private power plants in Pakistan. The process entails agreeing an electricity tariff with NEPRA and a Power Purchase Agreement (PPA) with the Central Power Purchasing Authority (CPPA), a division of the National Transmission and Despatch Company (NTDC) which owns and operates the high voltage transmission lines throughout the country. In addition to agreeing a PPA, an Implementation Agreement (IA),” which guarantees payments under the PPA, is to be entered into with the Government of Pakistan.

The Central Power Purchasing Agency issued a ”Letter of No Objection‘‘ for the 660MW power plant in November 2015 and NTDC also confirmed that power from the project will be accommodated within the planned high voltage transmission line.

The next stage of the process is for PPIB to issue a Letter of Intent (LOI) for the project which then requires the PPA application to be made along with the electricity tariff application and a generation licence application. Work is continuing to complete the Environmental Impact Assessment (EIA) for the Power Plant as part of the application process.

In addition, on site preparation work is underway for development in particular to establish land ownership so that land acquisition and resettlement can be undertaken in accordance with the Resettlement Policy Framework published by the Sindh Coal Authority Energy Department in May 2015 which has been written to conform to international best practice. In March 2017, we conducted a census of the six villages in Block VI to establish population and livestock numbers. In addition we are working to implement a Corporate Social Responsibility Programme (CSR) to provide early benefits to the local community in terms of water, basic healthcare, education and veterinary support.

Our work in 2017 will concentrate on formalising agreements and contracts to bring the project to full implementation, in line with the fiscal incentives, along with securing all the financing arrangements.

I am most grateful to both the Provincial Government of Sindh and the Federal Government of Pakistan for their continuing support for developments in the Thar Coalfield and our Block VI project in particular which will be a major contributor to alleviating the electricity shortfall in the country. The Company again extends its thanks to the shareholders for their continued patience and support.

Shahrukh KhanChief Executive Officer

09 May 2017

15

Managing our Risks

The Block VI development comprises both a mine and a power plant. Various factors could give rise to delay in completion. These include:

►Delay in mine development either due to geological issues or project execution (e.g. equipment not available as planned).

►Power plant not developed as planned or fails performance tests.

►Dewatering of mine does not work as planned or excess water cannot be effectively disposed of.

►Transmission lines are not completed on time.

The risks are increased by the inter-dependence of the mine and the power plant; the mine needs the power plant to be ready to commence full coal production and the power plant relies on coal from the mine being available to commence power generation. Power delivery to the grid relies upon the transmission facilities being in operation.

►The Company is in discussion with major Chinese State-owned Enterprises who are world leaders in their fields as EPC contractors for the mine and for the power plant.

►The Company is in close contact with the relevant Government authorities regarding both transmission lines and water management issues.

►The Company will take out the normal suite of insurance policies.

►As noted above, to the extent that delays lead to increased cost, these would be recoverable through the coal and electricity pricing mechanisms.

►The project has been added to the Priority List of the China-Pakistan Economic Corridor.

RISK MITIGATION/STRATEGY LIKELIHOOD/ IMPACT

KEY

Project Completion Risk

The Group is principally engaged in the development of lignite coal resources in Block VI in the Thar desert in the Sindh province in Pakistan through an open pit mine supplying a mine-mouth power plant. The principal strategic and operational risks and uncertainties facing the Group are described below, together with the steps taken for their mitigation.

Technical issues, similar to those described above, may affect the operation of both the mine and the power plant. Interdependence is also a key issue in the operational phase; failure to produce coal as planned would constrain power generation and failure of the power plant to operate to the assumed load factor will constrain coal production.

Water is an additional risk during production operations. Further hydrology work is planned before project completion, from which the hydrology dynamics will become clearer. The mine will require dewatering, and water is required for the power plant process. Whilst the mine water production is expected to meet the power plant needs, the amount of dewatering needed and any imbalance in the water production and utilisation may cause additional cost pressures.

►As for Project Completion Risk, both the mine and the power plant will be operated by world leading contractors.

►As for Project Completion Risk, the Company will take out the normal suite of insurance policies, as described in section 2.14.

►As in the case of Completion Risk, to the extent that operational issues give rise to cost increases, these should also be recoverable through the coal and electricity pricing mechanisms.

►If more water is required, either the Company will ask the Government to meet its obligations, or more water wells will be drilled.

Operating Risk

Broadly, completion and operating risk is being addressed though the selection of Chinese State-owned Engineering Procurement and Construction contractors of world leading experience in mining and in power generation, based on the earlier feasibility work carried out by highly reputable consultants. Economic risk is protected, including cost increase, through the Government of Pakistan‘s cost-plus pricing mechanism. Financing risk remains, but is reduced because the project now has enhanced status under the China-Pakistan Economic Corridor.

There remains political risk, say a falling out between Pakistan and China in some way leading to the pricing mechanism not being honoured.

These risks are detailed below, along with the key measures taken for mitigation. Medium Impact

Medium Likelihood

Low/medium Likelihood


The overall project is expected to cost of the order of US$1,600m. The greater part of this will be two EPC contracts, one for the mine and one for the power plant, with major Chinese State–owned Enterprises. Sinosure have offered outline terms on the basis of which, subject to detailed agreement, they will securitise up to 85% of the two EPC contracts and a debt equity ratio of 75:25. There may be a small additional amount of debt required, in which case, the balance will be sought from Pakistani banks. Discussions are on-going with potential equity investors for the equity portion of the funding.

The two major risks are that the Company fails to come to agreement with Sinosure and that the Company has difficulty in raising the equity portion required for the project.

US$50bn is available from China as loan finance under the China Pakistan Economic Corridor, and with the project’s recently enhanced status as “Priority”, it should be possible to reach agreement with Sinosure. This should give enough confidence to incoming shareholders to allow the company to raise the balance of Oracle‘s share of equity. This view is supported by Brokers Brandon Hill Capital Limited and Peterhouse Corporate Finance.

The economic performance of the Company could be affected by movements in international markets. These include:

► Exchange rate movements, amongst the four currencies, US Dollar, Remnimbi, Pakistani Rupee, Pound Sterling that affect the Company.

►Increased interest rates which, if arising during construction, would add to capital costs.

► Fall in international energy prices encouraging import either of imported coal, gas or oil.

►US$ inflation, which could raise capital and operating costs.

The income streams of the mine and the power plant are based on two key agreements: the Coal Sales Agreement for sales of coal to the power plant and the Power Purchase Agreement for sales of electricity to NTDC, under which the IRR is guaranteed by the Pakistani Government in US Dollar terms. Therefore at a project level the project is protected against adverse currency movements, eg a strengthening Remnimbi, which would increase the cost of Chinese equipment. At a corporate level, Oracle‘s flow of dividends is protected in US$ terms, so there is a risk of loss or gain in £ Sterling terms. The project is also protected against adverse movements in interest rates and in US$ inflation.

►Cost variances resulting from exchange rate movements and US$ inflation should generally be recoverable through the coal and electricity pricing mechanisms.

►The risk posed by further importation of coal or oil for power generation is not considered to be high given the large price differentials and the present lack of power plants. The savings in foreign exchange to the country of import substitution through local energy production are clear.

Economic Risk

Financing Risk

The Federal and Sindh Governments have demonstrated strong support for the integrated Thar coal mining and power plant development, and for maintaining the supportive regulatory and fiscal regime at present in place. Risks arise from:

►Change in regime.

►Shorter term, the funding and completion of local infrastructure, including the power transmission line from the power plant.

►Longer term, when investment has been made, adversely varying the fiscal regime, the lease terms or the royalty and tax rates.

►Bureaucratic interpretation of regulations, including pricing mechanisms; also potentially leading to delay.

►Security and terrorism, particularly as operations in Thar take on a higher profile.

►NGO activism.

►The shortage of power and the imperative to develop Thar would be clear to any incoming government.

►Much of the planned major infrastructure is already in place.

►Longer term, there are strong international forces to ensure that foreign investment is properly protected, ie CPEC and Investment Treaties with China and the UK.

►Oracle has a strong working relationship with all relevant levels of Government, and will use these relationships to address potential bureaucracy and delay.

►The Government has set up a special force with overall responsibility for security in Thar. Oracle is putting in place a comprehensive security plan, to complement Government agencies.

►From the outset, Oracle has understood the need to act as an exemplary corporate citizen. Oracle has long established a Community Liaison Officer and will continue to foster good relationships with local communities. Oracle will work with other developers of Thar Coal, for example Sindh Engro in Block II in joining the Thar Foundation, set up to coordinate welfare initiatives projects.

Political, Legal, Regulatory and Fiscal Risks

17

Our Responsible Engagement

Improvements and extension of the existing government primary schools in Block VI:

►Training of literate male and female community members for teaching

►Extension of the building to support more students►Supply of stationery and other provisions

Bi-annual hygiene and healthcare awareness campaign in all communities

Setting up water filter systems in all communities

Awareness campaign on methods to improve livestock health and productivity in all communities

Construction of a road to connect local villages and communities to the mine site access road proposed under project

Oracle Coalfields PLC is a responsible corporate entity, and is continuing to apply international best practice to the Thar project. We are aware of the key role we have to play in developing this pioneering project, in minimising the impact our operations can have on the natural and social environment and in creating opportunities for the local community.

OUR SUPPORT


ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT (ESIA)

Oracle Coalfields PLC commissioned Wardell Armstrong International Ltd. (WAI) to produce an Environmental and Social Impact Assessment (ESIA) for the Block VI project. WAI is working with Hagler Bailly Pakistan, a local group of environmental consultants, based in Islamabad, to complete the ESIA to meet both national and international standards. The ESIA was completed and submitted in April 2013 to the Sindh Environmental Protection Agency, Government of Sindh (SEPA). A public hearing was held on site in June 2013, attended by the local people along with government representatives, SEPA, various non-governmental organisations (NGOs) and our consultants as part of the public consultation process. The project along with its impacts and mitigation plans were presented to the public and all were given the opportunity to comment on the proposals and question the Company and the Government on all aspects of the proposed development. There was overall support for the project and the Company will continue its consultation with the local people as the project moves into the implementation phase.

Early in July 2013 SEPA held a Technical Committee Hearing in Karachi to examine the technical aspects of the ESIA and to take on board concerns raised at the public hearing which was attended by the Company and its consultants along with government representatives. All the technical queries raised by the panel were addressed satisfactorily and the Company outlined how the Environmental Management Plan would be implemented and monitored through the life of the project.

Following these meetings SEPA has issued the “No Objection” Certificate giving formal approval for the ESIA in January 2014 which is another significant step towards mine development.

An ESIA for the 660MW Power Plant has been completed by the international consultancy Mott MacDonald and has been submitted to SEPA for approval in early 2017 which has assessed the impacts of the mine-mouth power plant along with proposed mitigation measures. An Environmental and Social Management Plan has been prepared prior to project implementation.

Also in 2016 WAI have reviewed and revised the Mine ESIA and completed it to International Standards. The ESIA was completed and published in early 2017 in conjunction with the Power Plant ESIA.

19

Our Responsible Engagement Continued

A Resettlement Framework and Resettlement Action Plan (RAP) was prepared and submitted to SEPA in April 2014 as required under the ESIA approval. The RAP has been prepared in line with the Government‘s Resettlement Framework Policy. The RAP has been prepared to ensure that the process is managed in line with best practice standards, and a full programme of consultation, specifically dealing with this issue is being instigated. Communities will be resettled locally (i.e. within the Block area).

The next stage of the process is to carry out a detailed land ownership survey of the mine and power plant areas to identify the land owners and their families, livestock, and agricultural assets prior to formal land acquisition procedures which will be instigated at the time of project implementation. This process is underway and will be ongoing in 2017.

As part of the resettlement process, which will occur in full consultation with the affected communities and Project Affected Peoples, resettled communities will be given equivalent, alternative lands for their villages. Oracle intends to construct replacement villages, with full electricity, sanitation, and potable water supply, and culturally appropriate places of worship, with opportunities for a local market area. The exact design of resettlement villages will be decided in consultation with the affected communities.

COMMUNITY AND CONSULTATION

In addition to the environmental characterisation of the site and its environs, a comprehensive social data gathering campaign has been completed. Background information on local demography, village structure, local culture, resources and socioeconomics has been collected. In addition, an ongoing public consultation has been undertaken to gather the views and opinions of local stakeholders (both at a local and national level), and to disseminate information about the project.

RESETTLEMENT

Community response has generally been positive, with an interest in the project, and the associated community benefits that it will deliver. As a result of the location of the lignite seams, and the requirement for associated infrastructure, some relocation of local communities currently residing within the Block, will be required.

The Government of Sindh Thar Coal and Energy Board published the Resettlement Policy Framework in May 2015 which sets out the formal mechanism for resettlement in Thar and is generally in line with international performance standards.

ORACLE SOCIAL DEVELOPMENT INITIATIVES

Oracle Coalfields PLC has appointed a Community Liaison Officer (CLO) in 2012 to act as the local point of contact for stakeholders, and to receive information from, and disseminate information to local community members. The CLO will also act as an intermediary, to represent the interests of the local communities to Oracle. As part of Oracle’s Corporate Social Responsibility initiatives, a strategy is being developed, to identify, and support community development projects. This is an ongoing process and will continue as the project moves into implementation.

BENEFITS AND OPPORTUNITIES

Oracle is working with local groups to ensure that the Block VI project delivers sustainable benefits to the communities, and an overall improvement in local living conditions, whilst also positively responding to the energy crisis in Pakistan. This project will result in direct and indirect benefits to the local communities. Direct benefits will include employment at the mine and power plant, whilst indirect benefits may include revenues generated by local supply of goods and services to the operations.

Oracle is working with local groups to ensure that the Block VI project delivers sustainable benefits to the communities, and an overall improvement in local living conditions, whilst also positively responding to the energy crisis in Pakistan.


Introduction to Governance

WE ARE COMMITTED TO MEETING THE STANDARDS OF CORPORATE GOVERNANCE

Anthony Scutt, Chairman

HOW WE GOVERN OUR COMPANY

During 2016 the Board continued its commitment to maintaining high standards of corporate governance, complying with the requirements of the corporate governance guidelines (Guidelines) for smaller quoted companies issued by the Quoted

Companies Alliance. The principles set out in the Guidelines cover four areas: the Board, Directors‘ remuneration, accountability and audit, and relations with shareholders. This is how the Board has applied such principles and how the Company complies

with the specific provisions of the Guidelines.

The role of the Audit Committee is to monitor the integrity of

the financial statements, and to review any significant financial reporting issues, especially the consistency of, and changes to,

accounting policy. The Committee also assesses the effectiveness of the Company‘s internal controls and risk management systems. The Committee considers and

makes recommendations to the Board, to be put to shareholders for approval at the AGM, in relation to the appointment, re-appointment

and replacement of the Company‘s external auditor. This extends

to monitoring the effectiveness, remuneration and independence of the external auditors. Whilst the Audit Committee is composed of two Non-Executive Directors of Oracle Coalfields plc it also has a

role to advise the Boards of group subsidiary companies, particularly

Sindh Carbon Energy Ltd. and Thar Electricity (Private) Ltd.

The Remuneration Committee is responsible for reviewing the remuneration, bonus/incentive schemes and pension provision for Board members and senior

executives of the Company. The Committee’s responsibility also

extends to the review of the remuneration of Board members and

senior executives of the Pakistani subsidiaries. It is policy that no

individual participates in discussions or decisions concerning their

own remuneration.

The Nomination Committee was established post-admission to review the structure, size and composition

of the Board, including the skills, knowledge and experience required,

and to make recommendations to the Board with regard to

any changes. The Nomination Committee is also available to

discuss senior staff appointments. This Committee also monitors the application of the Company policy on discrimination and encouraging diversity amongst the Company’s

workforce.

AUDIT COMMITTEE REMUNERATION COMMITTEE

NOMINATION COMMITTEE

21

Our Experienced Leadership

BOARD OF DIRECTORS

Yves MordacqDirector

Mr Mordacq is the founder and manager of ECYM, an advisory boutique based in France. Prior to this, he was Managing Director of Fairview Management, overseeing its small-cap multi-thematic fund, focused on sectors including natural resources, biotech and renewables. From 2002 to 2010, Mr Mordacq was the Deputy Head of the European Equity team at Generali Investments France with assets under management of up to €5bn. Prior to his role at Generali Investments France, Mr Mordacq managed ING Investment Management’s natural resources fund. Mr Mordacq has a Masters in Agriculture from Montpellier SupAgro and an MBA from ESSEC, France and Fundamental Geology degree from Conservatoire National des Arts et Métiers (CNAM). He is a member of the Société Francaise des Analystes Financiers and was a visiting professor at the Ecole des Mines de Paris.

Shahrukh KhanChief Executive Officer

Mr Khan was educated in the USA and UK. He was awarded a BA in Business administration and Economics at Richmond, the American International University in London. He has specialist expertise in large and complex projects, including project valuation and investment appraisal, feasibility studies and other project finance related services. Mr Khan has project finance experience in the natural resource and infrastructure related sector, predominantly in the Middle East, South Asia and China.

Anthony ScuttChairman and Senior Independent Non-Executive Director

Mr Scutt is a qualified Chartered Secretary and a Certified Internal Auditor with the US Institute of Internal Auditors. He has over 30 years of financial management experience with Shell International Petroleum and has worked in many parts of the world, including the Malagasy Republic, East and Central Africa, South Vietnam, Cambodia, the Philippines, Gabon and latterly as the Chief Internal Auditor of Shell UK. Mr Scutt then went on to become an investment analyst, writer and investor.

The Board of Directors and the Senior Management are committed to ensuring people are rewarded and recognised for their contribution.


INTERNATIONAL EXPERIENCE

Our Board has a strong blend of experience on delivering major projects and internationally.

SENIOR MANAGEMENT

Simon SmithFinance Manager

Mr Smith has a background in finance from a twenty-five year career in Shell, in a variety of posts. He was Finance Director in Sierra Leone and in Egypt where he also deputised for the Chief Executive. He also worked in Shell‘s M&A unit, particularly on the sale of Billiton, Shell‘s Metals division, the sale of Shell‘s agrochemical interests and Shell‘s early expansion into eastern Europe. Latterly he headed up Group Finance HR. Mr Smith has an MA in Economics from the University of Cambridge and is a fellow of the Institute of Chartered Accountants in England and Wales.

Brian RostronMining and Contracts Manager

Mr Rostron is a Mining Engineer with over 30 years‘ international experience and an expert on coal. He is a Chartered Engineer who has been responsible for the operational management of various coal mining companies with overall responsibility for production, financial performance, acquisitions and restructuring. Mr Rostron has previously been a Director of Miller Argent South Wales Ltd, H.J. Banks Mining, Scottish Coal Company, Coal Contractors Ltd as well as the Director General of the Confederation of UK Coal Producers. Mr Rostron has a BSc in Combined Science (Geology and Economics) from Sunderland Polytechnic and a MSc in Mining Engineering from the University of Newcastle-upon-Tyne. He is a member of the Institution of Materials, Minerals and Mining, a fellow of the Geological Society, a Fellow of the Institute of Quarrying and a member of the Institute of Explosive Engineers.

Tony EverittCompany Secretary

Mr Everitt was awarded a BSc in Mathematics with Computer Science from Sussex University and went on to qualify as a Chartered Accountant in 1991. The next 10 years were spent gaining a wide range of accounting, taxation and auditing experience in an accountancy practice before being admitted as a partner in 2001. Utilising the business management skills attained, Mr Everitt left the partnership in 2005 to form his own accountancy practice where he continues to operate as a sole practitioner.

Zaineb RidhaPA/Office Manager

Ms Ridha has a first class degree in BSc Software Engineering from University of Westminster. She worked for Siebel Systems and she became the first UK eAdviser specialist. Ms Ridha obtained Siebel 6/7 customer certification and she was responsible for major projects from initiation to delivery, within the UK and globally. Some of these clients were: the Bank of England, Reuters, BP, Saudi Aramco, GlaxoSmithKline, J.P. Morgan and Goldman Sachs. She also worked on projects for the UK Government.Following a career in IT, Ms Ridha then became the Office Manager as well as the Personal Assistant to the Board of Directors and members of the Senior Management Team within the organisation. She is involved with all aspects of the business.

23

Oracle Coalfields PLC is registered as a public company under English Law. Its shares are listed on the AIM market of the London Stock Exchange (AIM:ORCP). Oracle Coalfields plc is incorporated and domiciled in England and its registered number is 05867160.

Company Information

DIRECTORS Mr S Khan Mr A C R Scutt Mr M R Stead Mr Y Mordacq

SECRETARY Mr T Everitt

LONDON 6th FloorOFFICE Two Kingdom Street London W2 6BD

REGISTERED Tennyson House OFFICE Cambridge Business Park Cambridge CB4 0WZ

AUDITORS Price Bailey LLP Richmond House Ely Cambridgeshire CB7 4AH

NOMINATED Grant Thornton UK LLPADVISORS 30 Finsbury Square London EC2P 2YU

REGISTRAR Neville Registrars Limited 18 Laurel Lane Halesowen West Midlands B63 3DA

BROKERS Brandon Hill Capital 1 Tudor Street London EC4Y 0AH

Peterhouse Corporate Finance Limited 15 Eldon Street London EC2M 7LD

SOLICITORS Trowers & Hamlins LLP 40 Tower Hill London EC3N 4DX

HaiderMota BNR D-79, Block No.5 Karachi-75600 Pakistan

BANKERS Royal Bank of Scotland plc 1st floor, Conqueror House Vision Park, Histon Cambridge CB24 9NL

Habib Bank AG Zurich Moorgate Branch Habib House 42 Moorgate London EC2R 6JJ

Habib Metropolitan Bank Habib Bank Plaza I.I.Chundrigar Road Karachi-75650 Pakistan

PUBLIC BlythweighRELATIONS 4-5 Castle Court London EC3V 9DL

Fortbridge Consultancy 61 Monkton Street London SE11 4TX


Design & Productionwww.carrkamasa.co.uk

Oracle Coalfields PLC

6th FloorTwo Kingdom StreetLondonW2 6BD

T: +44 (0) 203 580 4314www.oraclecoalfields.com

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